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Real Estate Finance and Analysis for Non-Finance Executives  

The Finance Essentials to Guide Better Real Estate Decisions.

23-24 April 2025 in Dubai

We have formulated this comprehensive and practical program for real estate professionals from non-finance backgrounds. The program is unique for its adaptation of general accounting and finance principles to the decision-making in real estate sector. To enrich the dialog, it also highlights issues in urban and real estate economics that impact investment decision-making in the sector.

This program is ideal for real estate professionals and corporate executives including:

  • Real Estate Planning and Strategy Professionals
  • Development and Project Managers
  • Architects, Urban Planners and Engineers
  • Real Estate Marketing and Sales Executives
  • Property Investors and Support Personnel
  • Develop conceptual and practical real estate financial acumen. 
  • Comprehend why a direct application of general accounting and financial principles to real estate decision-making may not be optimal.
  • Gain a clear understanding of what drives the value of real estate assets and development projects.
  • Build an intuitive understanding of risk-return equation for properties and developments.
  • Appreciate the financial and physical characteristics of real estate assets as two sides of the same coin.
  • Learn what financing choices are generally available for real estate investments and how those choices drive decisions.a
More than other sectors of economy, ownership of real estate is unique as it entails owning a financial asset as well as its physical counterpart. A focus on one aspect alone leads to suboptimal decisions. This course highlights the financial side of this equation, and relates it to the physical, from the perspective of professionals who are involved in the design, engineering, construction, marketing, sales, and other activities undertaken in developing, owning, or operating the property. 

The course begins with a general appreciation of how financial fundamentals apply to real estate sector. We also develop a real estate specific financial statement, as well as introduce techniques to analyze this information. We then apply these fundamentals to value real estate assets and analyze development initiatives. A discussion of financing choices in making investments in properties or development of properties closes the loop.

Application of financial principles without a solid appreciation of real estate and urban economics, however, would be incomplete. The course, therefore, addresses this "strategic" dimension in real estate decision-making and how it impacts financial decisions. 

Throughout we aim to identify common value drivers that underlie both the physical and financial real estate assets.

1. Finance Fundamentals for Real Estate Sector

Value creation in real estate.
Risk and return relationship.
Drivers of value underlying real estate assets.
Quantifying value drivers using present value mathematics.
Modeling real estate cash flow with perpetuities.
Valuation of cash flow perpetuities.
Deconstructing capitalization rates, equivalent of multiples for real estate.
Capitalization rates across markets.
Graaskamp model of real estate development.

2. Simplified Accounting for Real Estate

Accounting concepts of relevance in real estate.
Framework for a real estate financial statement.
Components of a real estate setup.
Sources of information.

3. Financial Analysis of Real Estate Properties

Framework for real estate analysis.
Financial ratios for evaluating real estate investments.
Using ratios to assess profitability, leverage and risk.
Complementing financial analysis with qualitative assessment.

4. Property Valuation

Real estate valuation frameworks.
Projecting cash flow for real estate investments.
Real estate market analysis - identifying drivers.
Practical insights into discount rates.

5. Financing Choices in Real Estate

Effect of leverage on real estate values.
Construction versus permanent financing.
Types of mortgages
Lease versus buy decisions.
Sources of financing in real estate sector in the region.

6. Urban-Economic and Macro Factors Affecting Real Estate

How urban growth impacts real estate values.
Drivers of real estate demand.
Overview of real estate development decision-making.
Understanding land value.
Highest and best use overview.
Kindly click on Download to receive the complete program details in pdf format.